Quyết định 11/2008/QĐ-BCT của Bộ Công Thương về việc phê duyệt quy hoạch phân vùng thăm dò, khai thác, chế biến và sử dụng quặng vàng, đồng, niken, molipđen Việt Nam đến năm 2015, có xét đến năm 2025

DECISION

APPROVING THE PLANNING ON ZONING OF AREAS FOR EXPLORATION, EXPLOITATION, PROCESSING AND USE OF VIETNAM'S GOLD, COPPER, NICKEL AND MOLYBDENUM ORES UP TO 2015, WITH THE 2025 VISION TAKEN INTO CONSIDERATION

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the March 20, 1996 Law on Minerals and the June 14, 2005 Law Amending and Supplementing a Number of Articles of the Law on Minerals:

Pursuant to the Government's Resolution No. 59/2007/NQ-CP of November 30, 2007, on a number of measures to solve problems arising in construction investment activities and reform a number of administrative procedures applicable to enterprises;

Pursuant to the Government's Decree No. 160/ 2005/ND-CP of December 27. 2005, detailing and guiding the implementation of the Law on Minerals and the Law Amending and Supplementing a Number of Ankles of the Law on Minerals:

Pursuant to the Government's Decree No. 189/ 2007/ND-CP of December 27. 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade:
In furtherance of the Government Office's Official Letter No. 3174/VPCP-CN of June 11. 2007, notifying the Prime Minister's opinions on authorizing the Minister of Industry (now the Minister of Industry and Trade) to approve the planning on zoning of areas for exploration, exploitation, processing and use of copper, gold, nickel and molybdenum ores up to 2015, with the 2025 vision taken into consideration;

Considering Report No. 138/VML-C2 of April 7, 2008. of the Mining and Metallurgy Science and Technology Institute;

At the proposal of the directors of the Planning Department and the Heavy- Industry Department.

DECIDES:

Article 1.- To approve the planning on zoning of areas for exploration, exploitation, processing and use of Vietnam's gold, copper, nickel and molybdenum ores up to 2015, with the 2025 vision taken into consideration, with the following principal contents:

I. DEVELOPMENT VIEWPOINTS

- To develop the industry of exploitation and processing of gold, copper, nickel and molybdenum ores in line with the planning on Vietnam's industry development and local socio-economic development plannings, ensuring harmony between national interests and local interests, satisfying requirements of consolidation of security and defense, protection of valuable cultural works and protection of the ecological environment in localities where exist these minerals.

- To develop the industry of exploitation and processing of gold. copper, nickel and molybdenum ores in a stable and sustainable manner ana with advanced technologies, ensuring safety and economic efficiency on the basis of rationally and economically exploiting the country's natural resources.

-To conduct exploration one step ahead in order to find out reliable reserves of gold, copper, nickel and molybdenum ores for the mineral exploitation and processing in the planning period.

- To develop the industry of exploitation and processing of gold, copper, nickel and molybdenum ores mainly based on the country's advantages in natural resources and utilization of internal strengths, in order to meet first of ail needs of the national economy. To export only processed products which are in excess of the domestic consumption demand.

II. DEVELOPMENT OBJECTIVES

- To concentrate on exploring mines and mining spots of gold, copper, nickel and molybdenum ores which have been surveyed and assessed in order to ensure reliable reserves for the exploitation and processing in the planning period.

- To exhaustively extract natural resources in the exploitation and processing processes by applying advanced technologies, ensuring the economic efficiency of the exploitation and eco-environmental protection in localities where mineral activities are conducted.

- To intensify synchronous investment in establishments engaged in deep processing of gold, copper, nickel and molybdenum minerals with advanced technologies. To strive to achieve the following outputs of various products from deep processing:

+ Gold metal: 4 tons/year and 6 tons/year by 2010 and 2015. respectively, and 8-10 tons/year during 2015-2025.

- Copper metal: 10.000 tons/year and 20,000 tons/year by 2010 and 2015. respectively, and 30,000-40,000 tons/year during 2015-2025.

+ Nickel metal (converted): 0 ton/year by 2010 and 7,000-10,000 tons/year during 2015-2025.

+ Ferro-molybdenum: 20-40 tons/year and 40-80 tons/year during 2016-2020 and 2021-2025 espectively.

III. FORECAST DEMANDS FOR GOLD, COPPER, NICKEL AND MOLYBDENUM

Demands for gold, copper, nickel and molybdenum metals (or converted metals) are forecast as follows:

IV. EXPLORATION PLANNINGS

1. Gold ore exploration

The reserve and forecast resources of gold ores are estimated at around 151.3 tons of gold metal, of which around 53.5 tons have been determined at class C2 and 97,8 tons are forecast resources.

During 2008-2015, to intensify the exploration of 39 gold mines and mining spots which have been basically surveyed and show potential in natural resources and mining conditions, including 6 gold mining spots currently under exploration for industrial-scale mining, namely Sa Phin and Minh Luong (Lao Cai); Tra Nang (Lam Dong); underground gold ores in A Vao - A Pey in Quang Tri and Thua Thien-Hue provinces: Bong Mieu (Phu Ninh and Northern Tra My districts of Quang Nam province): and underground gold ores in Dac Sa (Phuoc Son district, Quang Nam province).

Total investment capital needed for the gold ore exploration is projected at around VND 660 biliion.

2. Copper ore exploration

The reserve and forecast resources of copper ores are estimated at around 2.21 million tons of copper metal, of which around 1.24 million tons have been determined at class C2 and 0.97 million tens are forecast resources.

During 2008-2015. to intensify the exploration of 18 copper ore mines and mining spots which have been basically surveyed and show potential in natural resources with a total projected investment capital of VND 189 billion, including the following major mines: Ta Phoi and Vi Kem (Lao Cai); An Luong and Lang Phat (Yen Bai): Nam He - Huoi Say (Dien Bien); Nam Tia. Nam Nga and Nam Kinh (Lai Chau); Suoi On. Da Do. Phieng Luong and Na Lay (Son La); and Duc Bo (Quang Nam).

3. Nickel ore exploration

The reserve of nickel ores determined at class C2 is around 3.5 million tons, largely found in Son La province.

During 2008-2015. to concentrate on exploring and upgrading ore bodies II and III in Ban Phuc mine and exploring and upgrading Ta Khoa mine, ensuring a reliable reserve for exploitation and deep processing in the locality. Total investment capital needed for the nickel ore exploration in Son La province is projected at around VND 50 billion.

4. Molybdenum ore exploration

The reserve and forecast resources of molybdenum ores are estimated at around 28,4 thousand tons of molybdenum metal, of which around 7 thousand tons have been determined at class C2 and around 21.4 thousand tons are forecast resources, largely found in Lao Cai and An Giang provinces.

Upon the completion of the basic survey and assessment (by 2012), to commence the exploration of two prospective mining spots of Kin Chang Ho and O Quy Ho (Lao Cai) during 2016-2020 in order to ensure a reliable reserve for exploitation after 2020.

V. EXPLOITATION AND PROCESSING PLANNINGS

1. Gold ore exploitation and processing

- To step up investment in the exploitation and processing of gold ores to gold metal products. During 2008-2015. apart from gold ore mining spots in other localities where small-scale exploitation and processing are conducted, to concentrate on investing in industrial-scale exploitation and processing in 6 gold mines, including Sa Phin and Minn Luong (Lao Cai): underground gold mine of A Vao - A Pey (Quang Tri and Thua Thien-Hue); Tra Nang (Lam Dong ); Bong Mieu and Dac Sa (Quang Nam) with a total output of 3.25 tons/year. During 2016-2025. depending on the reliably determined reserve, to invest in expanding and increasing the exploitation output to 4.7-5.0 tons/year.

- Total investment capital for industrial-scale exploitation and processing in the 6 gold ore mines in the planning period is projected at around VND 2.920 billion.

2. Copper ore exploitation and processing

- To step  up the industrial-scale exploitation.

soiling and refining of copper ores in 7 mines in Lao Cai. Yen Bai. Dien Bien and Quang Nam provinces, together with medium- and small-scale mines in Son La and Hoa Binh provinces.

- To invest in expanding and raising the capacity of existing Tang Loong copper mill (Lao Cai) to 20.000-30.000 tons/year depending on results of exploration of reserve of Ta Phoi. Vi Kem and Sin Quyen mines.

- To make new investment in copper mills in Son La and Yen Bai provinces with a total capacity of 10,000-15,000 tons/year based on the identified copper ore reserve in these areas and adjacent areas. To make new investment in small-sized copper and polymetalliferous mills with a capacity of between 2,000 and 5.000 tons/year in Quang Nam using material sources in the locality.

Total investment capital for industrial-scale exploitation, sorting and processing in 7 copper ore mines in the planning period is projected at around VND 5,460 billion.

3. Nickel ore exploitation and processing

- On the basis of results of additional exploration of ore bodies II and III of Ban Phuc mine and exploration for upgrading of Ta Khoa mine, to invest in and operate a factory for producing nickel metal and other byproducts in Son La (after 2013) with a capacity of 7,000-10,000 tons/year. To study and invest in a plant in Thanh Hoa to produce nickel sulfate salt from nickel recovered from chromium ores with a capacity of 500-1,000 tons/year in the period from now to 2015.

Total investment capital for industrial-scale exploitation and processing in 3 nickel ore mines in the planning period is projected at around VND 3.510 billion, including VND 3 trillion for mineral exploitation and sorting and VND 510 billion for processing.

4. Industrial-scale exploitation and processing of molybdenum

Molybdenum ore exploitation and processing On the basis of results of exploration of reliable reserves of two mines of Kin Chang Ho and O Quy Ho (Lao Cai). to invest in a ferro-molybdenum-processing establishment with a capacity of 20-40 tons/year during 2016-2020. which will be increased to 40-80 tons/year during 2021-2025.

Total investment capita! for industrial-scale exploitation and processing of molybdenum ores in the planning period is projected at around VND 85 billion, including VND 20 billion for mining and sorting and VND 65 billion for processing.

VI. INVESTMENT CAPITAL

Total investment capital for the exploration, exploitation and processing of gold, copper, nickel and molybdenum ores in the planning period is estimated at around VND 12,719 billion, including around VND 10,484 billion for the 2008-2015 period and VND 2.235 billion for the 2016-2025 period.

Investment capital sources include capital acquired by enterprises themselves, the State's development investment loans and commercial loans, and foreign direct investment capital (around VND 1,600 billion).

VII. MAJOR SOLUTIONS AND POLICIES

1. Group of overall solutions and policies

- Processing gold, copper and nickel ores into high-quality metals and their products, mainly for domestic consumption.

- Stepping up the decentralization of the responsibility for managing natural resources, perfecting regulations and intensifying bidding for mineral activities, especially exploitation and processing of gold and copper ores; establishing joint-stock companies with the participation of organizations and individuals experienced and capable of mining and financially capable for investing in all processes from exploration, exploitation to deep processing of minerals. Encouraging the diversification of forms of ownership to attract domestic and overseas resources in the development of the industry of exploitation and processing of gold, copper, nickel and molybdenum ores in the direction of prioritizing capable domestic enterprises and entering into joint ventures or cooperating with foreign countries in the processing of nickel and molybdenum which requires high techniques and technologies.

- Raising social responsibilities of gold, copper, nickel and molybdenum mineral enterprises through making contributions to building infrastructure: attracting, training and using local workforce: adopting active measures to protect the ecological environment: and actively taking part in improving the social environment.

2. Group of specific solutions and policies

a/ Market solution: Building and developing a domestic gold, copper, nickel and molybdenum product market operating under the market mechanism and the state management, suitable to Vietnam's integration roadmap. and facilitating fair competition and close cooperation in order to ensure sufficient material sources for processing and refining establishments which are under construction or planned for construction investment: gradually dominating the domestic market and step by step participating in the world market.

b/ Researching, transferring and receiving sciences and technologies

- Attaching importance to research into and application of advanced mining technologies and technologies for treating poor ores and copper oxide ores. Upgrading and perfecting existing technologies for mining and sorting. Researching and developing a technological process of treating nickel ores with a high content of impurities, laterite nickel ores mingled in chromium ores in Thanh Hoa: extracting useful minerals mingled in polymetal (copper, nickel, gold, molybdenum, cobalt, silver) ores by the mode of combining the State, scientific and technological institutions and mineral exploitation and processing enterprises of all economic sectors of all economic sectors.

- Further renewing and improving copper refining technologies, and drawing practical experience for the expansion of existing copper mills and building of new ones in Yen Bai and Son La provinces.

- Cooperating with foreign countries in the research and production of nickel metal, alloys and products of gold, copper, nickel and molybdenum of high economic value.

c/ Developing and training human resources: Cooperating with training establishments (vocational schools, colleges and universities) in training and retraining laborers and scientific researchers engaged in mining, mineral sorting and metallurgy suitable to the exploitation scale and conditions of Vietnam's gold, copper, nickel and molybdenum minerals. Attaching importance to the training of qualified mineral business leaders and administrators to meet enterprise development requirements in the context of competition and global integration.

d/ Protecting the environment: Mineral exploitation and processing enterprises shall take the initiative in applying all environmental protection measures in the processes of mineral exploration, exploitation and sorting; attaching special importance to the technology for treating gold ores with cyanide; refining sulfide ores with modem and environmentally friendly technologies (compliant with regulations on solid waste, wastewater, waste gases; recyclable water recovery and recovery of SO2, for production of H2SO4) seriously earning out the restoration of the post-mining ground and environment. Ensuring industrial sanitation and labor safety in production. Encouraging research into and application of advanced environmental treatment technologies at all production stages. State management agencies shall increase investment in equipment and devices for environmental observation and control.

dd/ Investment capital solution: To mobilize around VND 12.719 billion for investment in the development of Vietnam's industry of exploitation and processing of gold, copper, nickel and molybdenum ores up to 2025 from the following sources:

- Self-acquired capital of enterprises.

- Budget capital: To be used as investment supports for technical infrastructure works outside the fences of large-scale gold, copper and nickel mining, sorting and refining areas, and invested in training and scientific and technological research activities of institutes and schools in the industry.

- The State's development investment credit loans: To be provided for investment projects to exploit and process copper and nickel ores and produce copper and nickel metals and ferro-molybdenum in localities with difficult or particularly difficult socio-economic conditions under current regulations.

- Domestic and foreign commercial loans.

- Foreign investment capital: To set up joint ventures with foreign parties to carry out projects to deeply process gold, nickel and molybdenum ores.

e/ State management solutions:

- Periodically reviewing, updating and adjusting the planning on development of the industry of exploration, exploitation and processing of gold, copper, nickel and molybdenum ores to make it suitable to the national and global socio-economic development.

- Formulating and perfecting a mechanism of management of mineral exploration, exploitation

and processing in the direction of ensuring the unified, strict, independent, active and effective management, protection and exploitation of gold. copper, nickel and molybdenum ores.

- Periodically improve the work of management of natural resources, making of statistics and reporting on gold, copper, nickel and molybdenum mineral activities from the grassroots level to provincial and ministerial levels. Applying handling measures and imposing severe sanctions against organizations and individuals that fail to fully comply with legal provisions on minerals and environment. Intensifying the inspection and examination of mineral activities so as to prevent illegal mineral exploitation and export.

g/ Other solutions:

- Renovating the management of mineral activities toward convenient procedures for and publicity of grant of mineral activity permits, and strict management of permitted mineral activities.

- Revising indicators used in the determination of reserves and natural resources of gold, copper, nickel and molybdenum ores to suit increasing copper, nickel and molybdenum ore and metal prices as well as scientific and technological advances in mineral exploitation and processing.

VIII. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Industry and Trade shall publicize and organize the implementation of the planning, regularly update and adjust the planning and propose mechanisms and policies on sustainable development of the industry of gold, copper, nickel and molybdenum ore exploitation and processing to ensure its consistency and conformity with the national socio-economic development and international integration commitments.

2. The Ministry of Natural Resources and Environment, the Ministry of Science and

Technology, the Ministry of Planning and investment, the Ministry of Finance, the Ministry of Transport and the Ministry of Information and Communication shall, within the scope of their respective functions and tasks, assume the prime responsibility for. and coordinate with the Ministry of Industry and Trade in. concretizing solutions and policies set forth in this Decision.

3. Provincial/municipal People's Committees shall:

- Organize the management and protection of gold, copper, nickel and molybdenum ores in their localities: prevent the illegal exploitation and export of these minerals.

- Assume the prime responsibility for. and coordinate with concerned ministries and branches in. zoning off and approving areas where gold, copper, nickel and molybdenum mineral-related activities are banned, temporarily banned or limited.

- Coordinate with state management agencies and enterprises in implementing projects specified in this Decision.

- Elaborate and submit to People's Councils of the same level for approval plannings on exploration, exploitation and processing of gold, copper, nickel and molybdenum ores falling under their competence and in line with this planning.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO."

Article 3.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decision.

APPENDIX:

LIST OF SCHEMES ON EXPLORATION, EXPLOITATION, PROCESSING AND USE OK GOLD, COPPER, NICKEL AND MOLYBDENUM ORES UP TO 2015, WITH THE 2025 VISION TAKEN INTOCONSIDERATION

(Attached to the Industry and Trade Minister's Decision No. 11/2008/QD-BCT of June 5, 2008)

APPENDIX 1

STATISTICS ON RESERVES AND FORECAST RESOURCES OK VIETNAM'S COLD ORE MINIS

(Based on geological archives)

Note: Reserves are converted into gold metal.

APPENDIX 2

LIST OF SURVEYED AND ASSESSED GOLD ORE MINES

(Appendix to the Natural Resources and Environment Ministry's Document No. 232/BTNMT-DCKS of January 17, 2006, and approved by the Prime Minister in Document No. 732/TTg-CN of May. 15, 2006. on management of gold mineral)

Note: Reserves are convened into gold metal.

APPENDIX 3

LIST OF INVESTMENT PROJECTS ON GOLD ORE EXPLORATION

(During 2008-2015)

APPENDIX 4

LIST OF INVESTMENT PROJECTS ON INDUSTRIAL-SCALE GOLD ORE EXPLOITATION AND PROCESSING

Notes:

At present. Vietnam exploits and processes an average quantity of 1.000 kg of gold per year.

It is projected that gold mines and ore spots managed and licensed by localities will contribute a total output of around 2.000 kg of gold/year during 2010 - 2015 and around 3.000 kg of gold/year after 2015.

Gold refining will be carried out by gold. sliver and gem companies or banks.

APPENDIX 5

STATISTICAL TABLE OF VIETNAM'S COPPER ORE RESERVE AND FORECAST RESOURCE

Reserves B + C1 + C2 are 1,238,459 tons of Cu and nearly 37.5 tons of Au. Mines numbered 1, 2, 3 and 20 have been explored while others are in the process of seeking or assessment

APPENDIX 6

LIST OF INVESTMENT PROJECTS ON COPPER ORE EXPLORATION

(During 2008-2015)

APPENDIX 7

LIST OF INVESTMENT PROJECTS ON INDUSTRIAL-SCALE COPPER ORE EXPLOITATION AND SORTING

Notes:

Total output of crude ores exploited from small-scale mining spots will be around 1 million tons/year with a total investment capital of around VND 600 billion. All purified ores will be used for copper refining.

Total volume of purified ores will be around 220.000 tons/year, enough for increasing the metallurgical output to 50.000 tons of copper/year by 2016. and for maintaining or increasing this output after 2016 if the post-exploration and upgrading copper reserve is larger.

After exploration results are obtained, a project on copper ore exploitation and processing in Hoa Binh province may be considered for addition to the planning for the post-2008 period.

APPENDIX 08

LIST OF INVESTMENT PROJECTS ON MILLS FOR COPPER ORE DEEP PROCESSING

Notes:

During 2010-2015. Phuc village nickel ore exploitation and processing plant and a copper resource exploitation and processing plant in Cao Phong. Hoa Binh will additionally supply raw materials for Son La copper mill.

During 2010-2015. purified copper ores will be additionally supplied by Nui Phao polymetal ore exploitation and processing plant for copper refining in Yen Bai.

3. Investment in copper mills in Son La. Yen Bai and Quang Nam will be accurately
determined on the basis of reliably explored copper reserves and specifically calculated
economic efficiency ion a small scale and environmental consequences especially  SO2).

APPENDIX 09

TOTAL RESERVE AND FORECAST RESOURCE OF NICKEL ORES

APPENDIX 10

LIST OF INVESTMENT PROJECTS ON NICKEL ORE EXPLORATION

(During 2008-2015)

APPENDIX 11

LIST OF INVESTMENT PROJECTS ON INDUSTRIAL-SCALE NICKEL ORE EXPLOITATION AND SORTING

(During 2008-2015)

APPENDIX 12

LIST OF INVESTMENT PROJECTS ON NICKEL ORE PROCESSING

APPENDIX 13

RESERVE AND FORECAST RESOURCE OF VIETNAM'S MOLYBDENUM ORES

(*) On the list of mines and :re spots subject to molybdenum survey and assessment under the survey planning promulgated together with the Prime Minister's Decision No. 116/2007/QD-TTg of July 23. 2007.

APPENDIX 14

LIST OF PROJECTS ON MOLYBDENUM ORE EXPLORATION

APPENDIX 15

LIST OF PROJECTS ON INDUSTRIAL-SCALE MOLYBDENUM ORE EXPLOITATION AND SORTING

APPENDIX 16

LIST OF PROJECTS ON FERRO-MOLYBDENUM PROCESSING AND REFINING